Is a Cordova franchisee required to maintain insurance coverage?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
| v. Choice of forum | 18.G. | Except for certain claims for injunctive relief, all litigation |
|---|---|---|
| proceedings must be conducted in the appropriate State or Federal | ||
| Court within or closest to either Douglas County, Nebraska or the | ||
| State or Federal Court nearest to our corporate headquarters at the | ||
| time such action is commenced. This provision is subject to | ||
| applicable state law. | ||
| w. Choice of law | 18.F. | Nebraska law will govern. However, this provision is subject to |
| state law and as otherwise disclosed in Exhibit I to this Disclosure | ||
| Document. | ||
| Business; timely develop and open your Cordova | ||
| Business; | ||
| operate | ||
| your | ||
| Cordova | ||
| Business | ||
| in | ||
| accordance | ||
| with | ||
| the | ||
| specifications, standards, and requirements set forth in our | ||
| Manuals; develop or operate your Cordova | ||
| Business in | ||
| compliance with all federal, state, and local laws, rules, and | ||
| regulations, unless, such violation poses a threat to public health | ||
| or safety; maintain insurance coverage that we require; comply | ||
| with our standards, systems or specifications as we may designate | ||
| or as otherwise designated in the operations manual; fail to | ||
| operate your Cordova | ||
| Business in conformity with our System or | ||
| otherwise violate the Franchise Agreement, except as to events of | ||
| default that are not curable. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–37)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, franchisees are required to maintain insurance coverage. Specifically, franchisees must "maintain insurance coverage that we require." This obligation is listed alongside other requirements for operating the Cordova business, such as adhering to specifications in the manuals and complying with all applicable laws.
This requirement means that as a Cordova franchisee, you must secure and maintain the types and levels of insurance coverage that Cordova specifies. Failing to maintain the required insurance could be considered a breach of the franchise agreement. The FDD does not specify the types or amounts of coverage required.
Prospective franchisees should carefully review the franchise agreement and operations manual to understand the specific insurance requirements. It is important to factor in the cost of insurance when evaluating the overall investment and operating expenses of a Cordova franchise. Franchisees should discuss these requirements with an insurance professional to ensure they obtain adequate coverage and remain compliant with Cordova's mandates.